Marketing -Segmantation Analysis of Shell Essay

1323 Words Feb 25th, 2013 6 Pages
Marketing-Segmentation analysis of Shell
Shell Oil Products Company succeeded in building its new brand image to increase retail marketing revenues.In this case analysis, we will use STP to analyze Shell’s sucessful marketing strategy.

1. Segmentation
Oil station market consists of buyers who differ in one or more ways, so Shell need first segment its potential consumer market.
There are several major variables that can be used in segmenting consumer markets, including geographic, demographic, psychographic, and behavioral variables. In this case, SOPC used the latter two variables to segment its market. It chose “personality” and “benefit” as its segmentation criteria, of which the former belongs to psychographic segmentation
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* Which segments it should target?
A targeting market consists of a set of buyers who share common needs or characteristics that the company decides to serve. According to Shell’s marketing research, premium speedsters(PS), simplicity seekers(SS),and safety firsters(SF) have some need and requirements for oil station in common: easy and quick (Figure2.1).

Easy and Quick!

Easy and Quick! | Quicktransaction | Easytransaction | Simpletransaction | Safetransaction | Goodservice | Premium
Speedsters | | | | | | Simplicity
Seekers | | | | | | Safety
Firsters | | | | | |
Figure 2.1 market target

So, Shell could choose these three segments as its target market. * Why won’t shell choose more segments?
Concentrated Marketing Strategy
“Quick and Easy”
Concentrated Marketing Strategy
“Quick and Easy”
If Shell target more segments, it will face more competition and may partially meet the needs of may different consumers. It’s more wise of Shell to align its efforts in a common direction to own a smaller set of consumers.So, Shell had better choose Concentrated Marketing Strategy, with focus on PS,SS,SF market segments.
Figure 2.2 marketing strategy 3. Position
After targeting proper consumers, Shell need to decide what positions it wants to occupy in those segments.
The positioning task consists of three steps, as the following shows. 1) Identify possible competitive advantages

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